China's cars jolt Detroit auto show - but can makers deliver?

DETROIT -- Perhaps symbolic of the changing world economy, two Chinese automakers moved into the limelight Monday at the media preview of the North American International Auto Show.

The absence of news from major manufacturers helped turn the focus to a pair of newcomers: Brilliance Auto and BYD Auto. Both companies had major displays on the main show floor, the first time any Chinese manufacturer has displayed outside the dark Cobo Hall basement or the foyer.

Nestled between Subaru on the left, Jaguar on the right, Brilliance and BYD held news conferences outlining plans to enter the U.S. market soon. For BYD, "soon" is in two years, while Brilliance would not set a timetable, saying it would wait for business conditions to improve.

The auto market in the United States declined to 13.2 million vehicles sold in 2008, down from just more than 16 million in 2007, and many analysts are predicting sales for 2009 at fewer than 11 million. The auto industry generally considers anything fewer than about 14 million sales a year to be a crisis.

Henry Li, a general manager for BYD, said his company wants to begin selling in 2011 the two models it's showing in Detroit: the e6, an electric SUV that carries nearly a thousand pounds of batteries, reportedly giving it a 250-mile range, and the F6DM, a plug-in hybrid sedan.

BYD is considered a pioneer in China for its electric and hybrid technology. Adding to the company's credibility is that a company controlled by investor Warren Buffett bought 10 percent of BYD late last year with an investment of about $230 million. The vehicles are expected to retail for less than $30,000 each.

Brilliance had a larger, more ambitious display with three sedans, named the M1, M2 and M3, and a hatchback called the FRV. All have four-cylinder turbocharged engines and are expected to sell in the $15,000 to $25,000 range.

Missing from the Detroit show were displays from Chinese companies that have been here in the past, such as Geely, Changfeng and Chery, which had, and then lost, a deal to build cars that Chrysler would sell in America.

One of the biggest hurdles would be establishing a dealer network, and one way to do that would be to acquire an existing network, should Chrysler, General Motors or Ford close one or more brands.

David Champion, who heads the automotive-testing division for Consumer Reports magazine, said the BYD offerings seem a bit primitive, "but the Brilliance cars on display look like they are ready for prime time right now. Hyundai should probably be looking over its shoulder."

Still, one American public-relations official who has worked for Brilliance said that the Chinese still have a little to learn about American tastes. The display featured a handsome black sedan with beige interior -- and bright-orange floor mats.

"I told them the floor mats needed to go," he said, "and at least they listened because they're gone now."